Scotland Yard has been called in to investigate a former senior minister over his expenses.

Denis MacShane, the ex-Minister for Europe, was referred to the police by Parliamentary authorities on questions of "possible criminal proceedings".

Labour immediately withdrew the party whip from him pending a police decision. He denies any wrongdoing.

The allegations are understood to cover bills submitted by the MP for "translation services".

The Standard has established that the Parliamentary Standards Commissioner John Lyon last year began an investigation into claims that Mr MacShane, 62, charged taxpayers more than £8,000 for translations reportedly carried out by an organisation run by his brother.

In a special report, a watchdog committee of MPs revealed that yesterday Mr Lyon handed the matter over to the Metropolitan Police.

Mr MacShane has attracted controversy over expenses. He claimed nearly £20,000 a year for an office based in the garage of his South Yorkshire home. The claims totalled about £125,000 over seven years. He submitted more than a dozen invoices from the European Policy Institute for "research and translation", a body controlled by his brother, Edmund Matyjaszek. The Rotherham MP also claimed for eight laptop computers in three years.

Scotland Yard confirmed the complaint had been received and said it would be considered by police and prosecutors to decide on the next step.

A Labour spokeswoman said: "Following a referral by the Parliamentary Commissioner for Standards to the Metropolitan Police Service, the Labour Party has today suspended Denis MacShane from the Parliamentary Labour Party and its whip, pending the outcome of any investigation."

The matter was being considered for possible investigation by the Yard along with a "small number of other allegations" relating to MPs.

There are already several police inquiries over expenses abuse identified after last year's leak of secret Commons files. Four ex-MPs are currently being prosecuted and a fifth — Labour's Margaret Moran, who claimed £20,000 for dry rot treatment — is expected to hear in weeks if she will face charges.

The complaint against Mr MacShane is believed to have been submitted in June last year by the far-Right British National Party and to relate to allowances claimed in his work. The MP is a campaigner against anti-Semitism and a target for Right-wing groups.

Mr MacShane said today he would give his full co-operation to the police, as he had done with Mr Lyon.

He added in a statement "I have been informed by the Parliamentary Commissioner for Standards that he has written to the Metropolitan Police in connection with his inquiry into a complaint against me filed in June 2009.

"While I obviously regret this development I will of course co-operate fully with the police, as I have with the Commissioner."

In its report, the Committee on Standards and Privileges said: "The Committee agreed that the Parliamentary Commissioner for Standards should report to the Metropolitan Police Service the conduct of the Rt Hon Member for Rotherham, Mr Denis MacShane.

"The Commissioner's inquiry into a complaint against him will be suspended until the question of possible criminal proceedings is resolved."